Growing Millennial Population with an Inclination towards the Premium Beer is Driving the Beverage Stabilizers Market Growth

From the advent of the 21st century, beverage stabilizers market is experiencing a rise due to an increase in the demand for natural and healthier food ingredients from the food and beverage industry. These beverage stabilizers are predominantly used to give a unique taste coupled with a good designer appeal to the drinks. With an increase in the use of stabilizers for beverages, hydrocolloid is an emerging trend. Amongst a variety of hydrocolloid, xanthan gum is an important additive used in beverage industry due to its high content of amino acid and protein. The demand for gluten-free beverages and food additives are growing, with which the demand for stabilizers are expected to propel in the marketplace. Owing to its binding characteristics as compared to locust beam gum and guar gum additives, xanthan gum is widely used in gluten-free products. In the liquids containing fruit pulp particles, xanthan gum helps in retaining their consistency and provide better appearances. Extensive use of such additives in the food and beverage industry is increasing the demand for beverage stabilizers. Xanthan gum has diverse, profitable advantages such as stabilization, water retention, texture enhancement, and shelf life extension that is influencing many beverage producing business leaders to use this for various applications.

The global beverage stabilizers market size is evaluated to be $118 million as of 2018, and with a rise in demand of hydrocolloids positively influencing global productivity of xanthan gum, opportunities in the market are progressing at a global CAGR of 6.2% during the forecast period 2019-2025.

PVPP/R-PVPP Beer Stabilizer Boosting North America Market

North America is among the fastest-growing regions of the beverage stabilizer market with a revenue share of 38% as of 2018. According to the Brewers Association, the small and independent America craft brewers’ growth collectively produced 25.9 million barrels growing at a rate of 13.2% in the United States as of 2018. An increase in the demand for craft beer is influenced by the rising number of craft breweries in the U.S. The penetration of low-alcohol beer and alcohol-free beer application is growing the beer stabilizer business in the North America beverage stabilizers marketplace. Beer stabilizer market is witnessing development due to expanding demand for flavored and gluten-free beer. The insoluble PVPP/R-PVPP are used as processing agents in beverages such as beers, whiskey, wine, vinegar, tea, and fruit juices. It works as an agent that provides flavor, color, and clarity to the beverages along with an increased shelf life. The use of PPVP in brewing allowed by the U.S. Food and Drug Administration is not more than 50 ppm (parts per million). 50 ppm of PVPP in beer is the maximum amount of stabilizer that is required for the products' qualitative determination. FDA regulations and guidelines in the U.S is attributed to the expansion of the beverage industry that will foster the growth of the beverage stabilizers market in North America. This is attributed to the fast-paced growth of the beer industry, increasing investments made by the business leaders, change in the consumer preference, and rise in disposable income. North America is a major growing hub for beer and craft beer because of an increase in the purchasing power of the consumers. In addition to this, the growing millennial population with an inclination towards the premium beer is driving the beverage stabilizers market growth.

Soft Drinks Segment is Expected to Dominate the Market

As of 2018, the soft drinks segment is dominating the beverage stabilizers market with a growing CAGR of 6.5% through to 2025. Carbonated soft drinks are still the largest application in the beverage industry with huge consumption by the millennials. This is attributed to the growing intake of aerated drinks globally. Gum Arabic is an emulsifying agent and widely used in beverages in cola and citrus-flavored oils that are utilized during the soft drink preparation. Therefore, the demand for gum arabic is growing day-by-day, which is propelling the beverage stabilizers market growth. In recent years, several brominated vegetable oils are being used as stabilizers for soft drinks. Most commonly known soft drinks that have been seeking huge traction are beverages ready-to-drink after dilution, ready-to-drink essence-flavored beverages, and ready-to-drink beverages containing fruits or fruit juice.

In 2018, Tate & Lyle Plc, leading provider of specialty food solutions and ingredients, announced a partnership with HORN, a national distributor of specialty ingredients for the nutrition industry in the U.S. The partnership between the two companies began from the 1st March 2018. Both the companies are expected to work together for bringing in innovations and to strengthen its extensive product portfolio. Due to such partnerships among the leading enterprises is leading to growth in the beverage stabilizers market.

· Ingredion Acquires TIC Gums Shares

Ingredion Incorporated, the global provider of ingredient solutions to various industries, signed a definitive agreement to acquire TIC Gums Share, a texture and stabilization solution provider in the U.S, in 2017. Ingredion is expected to fund $400 million cash transaction with short-term credit. The companies will provide rapid response to customer needs, superior formulation expertise, and texture capabilities. This acquisition is expected to robust growth and expansion of the beverage stabilizers market.

· Brenntag Group Collaborates with Caragum International

In 2018, Brenntag North America, Inc., a global leader in the chemical distribution, collaborates with Caragum International, a stabilizer manufacturing company for the food industry, for the distribution of Ester Gum in Canada and the United States. This acquisition will create new opportunities for ester gum products to its customers.

· Florida Food Products Acquired by MidOcean Partners

MidOcean Partners acquired Florida Food Products (FFP) in September 2018. MidOcean Partners is a middle-market equity firm that targets business solutions and consumers. Florida Food Products is a leading manufacturer of clean and natural label ingredients. FFP will grow and expand its product range with the investments by MidOcean. Similar acquisitions in the beverage stabilizers market are expected to fuel up the demand for the product.

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